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Budget Enforcement Act of 1990
The Budget Enforcement Act of 1990 was adopted to replace the Gramm-Rudman- Holiings Act of 1987, as a response to the budget crisis that persisted through the 80's. The Budget Enforcement Act concentrated on devising a new deficit control process that would contain the deficit by controlling the amount of revenue raised and money spent. In line with this reasoning, the Budget Enforcement Act established three sets of rules for controlling the deficit: adjustable deficit targets, caps on discretionary spending, and pay-as-you- go (PAYGO) rules for revenue and direct spending.
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